August 31, 2006 The geophysical data was reinterpreted and the company embarked on the geological follow up work to delineate targets for resource definition. A total of 32 new anomalies have been generated from the reinterpretation of the Alto Paraguai aero magnetic data in addition to the 32 previously identified by Rio Tinto (Brazil). The new anomalies comprised of nine priority one, thirteen priority two targets and the remaining were priority 3 targets. During the year all of the anomalies were assessed in relation to the regional geology and ground availability. Exploration of these anomalies has eliminated the majority of the geophysical targets and has identified two anomalies AP-54 and AP-60, both of which warrant further exploration.
